Insurers target Indonesia’s youth with online options

Demand for digital insurance services grows, driven by health awareness and convenience

JAKARTA, Indonesia (MNTV) — Rising income levels and increased awareness since the COVID-19 pandemic have boosted demand for insurance in Indonesia. 

Online insurance platforms are making it easier for companies to reach a tech-savvy younger audience, reshaping how insurance products are marketed and purchased.

Young Indonesians are gravitating toward medical and travel insurance, while older consumers prioritize coverage for vehicles and homes. 

The shift highlights evolving consumer preferences across generations.

The pandemic significantly influenced this trend, with heightened awareness of health and financial preparedness encouraging many Indonesians to consider insurance for the first time.

Industry experts see immense potential in Indonesia’s insurance market. 

Abhishek Bhatia, CEO of digital insurer Oona, predicts the country could become a $10–$12 billion market within the next five to seven years. 

Lauren Sulistiawati, president director of Manulife Indonesia, emphasized that consumers are becoming increasingly educated and proactive about insurance.

Digital platforms are a key driver of this growth, offering convenience and tailored options.

For instance, Kartika Riri, a 29-year-old from Yogyakarta, opted for online medical insurance with a monthly premium of 100,000 rupiah ($5.95). 

The plan provides hospitalization coverage up to 50 million rupiah ($2,976) annually, complementing the government’s national health care program.

By eliminating the need for face-to-face meetings with agents, digital insurance services appeal to younger customers seeking simplicity and efficiency. 

This shift is helping insurers tap into a burgeoning market, paving the way for broader access and adoption of insurance in Indonesia.